David Jones fell into both voluntary administration and receivership last week amid piling debt. Now its administrator is kicking off a rapid sale process.
Prospective buyers of David Jones have until Friday afternoon to express interest as administrators McGrathNicol kick off a sale process for the iconic retailer after its collapse last week.
Formal advertisements will go out this week, McGrathNicol partner Matthew Hutton said, as the firm looks for a buyer who can create a more “streamlined and agile operating model” for the retailer following years of rising losses and mounting debt.
“There has been an extraordinary level of inbound interest from a range of highly credible industry players and financial investors,” Hutton said. “We are actively engaging with domestic and international parties that have experience in both turning around and operating highly successful retail department stores.”
David Jones’ board entered the retailer into administration last Thursday, appointing McGrathNicol. On the same day its secured lender, Hilco Capital, separately pushed it into receivership, tapping FTI Consulting to manage the company on its behalf.
As McGrathNicol looks to restructure and sell the business, receivers FTI Consulting said it is working with David Jones creditor Hilco to replenish stock after what management described as “record-level” in-store and online sales over the weekend.
“Whilst there were limited instances of brand partners withdrawing from some stores, the Receivers have overall had very positive engagement with David Jones’ trade partners,” FTI wrote in a Monday update.
“Following the strong trading in recent days, the Receivers are placing orders for replenishment stock in the normal course of business with suppliers that have confirmed trading agreements, with the support of Hilco.”
As observers speculate on potential store closures, FTI Consulting said it had not yet made any decisions about David Jones’ network of outlets. And as customers await a potential stock firesale, FTI says it will “continue to review” promotions as it heads towards Black Friday.
“We have a well-developed plan on how to reset the business for the future and will be working with the Administrators, the Receivers and our secured lender as we continue to pursue that reset of the business,” David Jones chief executive Erica Berchtold said last week.
David Jones suffered $95.5 million in pre-tax losses for the year to June 29, 2025, according to accounts filed to ASIC in April, rising from $74.1 million the year prior.
The retailer is owned by private equity firm Anchorage Capital Partners, which bought David Jones for around $100 million in 2023. South African conglomerate Woolworths Holdings had bought the company for $2.1 billion in 2014.
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